Manufacturing Sector Sales Drops Lesser In October At 1.4%: DOSM

The sales value of the Manufacturing sector declined by 1.4% in October 2023, albeit at a smaller rate as compared to the 2.4% drop in the preceding month this was reported by the Department of Statistics for the month of October.

It said the decrease was predominantly influenced by the persistent decline in the Petroleum, chemical, rubber & plastic products sub-sector by 9.5% (September 2023: -12.3%); and the Electrical & electronics products sub-sector which fell by 2.7% (September 2023: -0.04%). As compared to the preceding month, the sales value inched down by 0.7% as against RM157.8 billion recorded in September 2023 (3.7%).

The sales value of export-oriented industries which accounted for more than two-thirds of total sales, decreased by 5.2% in October 2023, following a 5.9% contraction in September 2023. Nonetheless, the domestic-oriented industries recorded vibrant growth of 9.9% in October 2023 (September 2023: 8.2%). On a month-on-month comparison, export-oriented industries shrank by 2.1% while domestic-oriented industries expanded by 3.2%.

The Manufacturing sector engaged 2.38 million persons in October 2023, an increase of 2.5% as compared to the 2.32 million persons registered in October 2022. The increment was mainly attributable to the rise in the number of employees in the Food, beverages & tobacco (7.7%); Non-metallic mineral products, basic metal & fabricated metal products (2.5%); and Electrical & electronic products (1.6%) sub-sectors. On a month-on-month basis, the number of employees in the Manufacturing sector increased slightly by 0.2%.

Resembling the positive trend in employment, the salaries & wages paid in the Manufacturing sector rose by 3.4% year-on-year, totalling RM8.1 billion in October 2023. As compared to the previous month, the salaries & wages paid posted a marginal growth of 0.1% as against 1.7% registered in September 2023. Furthermore, the sales value per employee decreased by 3.7% to record RM65,879 while the average salaries & wages per employee in October 2023 was RM3,425 which rose by 0.9% year-on-year.

Summarising the performance for the first ten months of 2023, the Manufacturing sector achieved sales value worth RM1.50 trillion, showing a slight growth of 0.9% as compared to the same period in the preceding year (Jan. - Oct. 2022: 17.1%). During this period, the number of employees increased by 2.5%, reaching a total of 2.38 million persons while salaries & wages grew by 3.6%, amounting to RM80.9 billion. Moreover, the sales value per employee stood at RM630,367, reflecting a decline of 3.7%.